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6 Things You Need To Do If You Want To Retire Early

6 Things You Need To Do If You Want To Retire Early

Most people think about retirement in some sense. You may be one of the “average” people looking for retirement at 65, or you may be someone who is aiming to retire early.

Early retirement may not be for everyone: it usually means that you have to go to some form of extreme in order to reach it. You may have to work long hours, cut your expenses a good amount, or even both. However, I’ve never heard a complaint from those who retire early.

Also, there are many websites that talk a lot about early retirement that you may want to read if you are serious about having this goal. My favorites include Mr. Money Mustache, Retire By 40Create My Independence and Johnny Moneyseed.

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1. Determine how you will live during early retirement.

You need to really think about how you want to spend your retirement in order to determine how you will reach early retirement. Will you be traveling the world? Will you move to a cheaper foreign country? Will you have children? Will you have grandchildren? How will you pay for anything medical that arises?

2. Figure out how much you will realistically spend in retirement.

For some reason, most think that they will spend less when they are in retirement. However, that is not always the case. You will have more free time and therefore will have more time to possibly spend money. Also, you will have to start paying for your own health insurance if it is currently being covered by your employer. The cost of this may shock you if you are not used to it.

3. Figure out how much you need to save in order to retire early.

Of course, the big factor of whether or not you can retire early is whether you actually have enough retirement funds. You need to figure out exactly how much you need to retire and how you can stretch that amount for decades to come. For example, if you want to retire in 10 years at the age of 35, you need to figure out exactly how much you need to survive in order to stretch your retirement funds for almost another 50 or 60 years.

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4. Start making as much money as you can.

One way to reach early retirement is to make as much money as you realistically can. Definitely do not engage in anything illegal, but try to get as many promotions and pay raises as you can. Work hard and know what your next step to reach that next pay level is.

This is where certain people aren’t interested in early retirement. Do you want a lifelong job that you love? Or do you want a job that will allow you to retire early? Usually it will be hard to have both.

There are many fields that you may be interested in to make more money. You can go into engineering, sales, certain financial sector jobs and more. Or you could work a day job and earn extra income on the side as well.

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5. Look for passive income.

If your goal is early retirement and you no longer want to work, you may want to look into making monthly income through passive sources. This way you are still bringing in money each month, but all that is required from you is occasional maintenance.

Ideas for passive income include rental properties, investing in dividend-paying stocks, and more.

6. Cut your expenses.

If you want to reach retirement as soon as possible, then you may want to make as much as you can, and also cut your expenses as much as you can. Doing both at the same time can drastically increase your savings rate.

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Look for any expenses that you can cut out of your budget. I am a firm believer of enjoying your money but also saving it. So, cutting your expenses does not mean that you need to cut everything out in your life that you enjoy. It means that you need to find a healthy medium.

There are many ways for you to get a better value for your money: ask for discounts, use coupons, buy quality items, and so on. Do you really need a 5,000 square foot home? Analyze anything and everything in your life. I’m sure there is something that you can cut out of your budget.

Do you want to retire early? Why, or why not?

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Published on November 8, 2018

How to Answer the Tough Question: What are Your Salary Requirements?

How to Answer the Tough Question: What are Your Salary Requirements?

After a few months of hard work and dozens of phone calls later, you finally land a job opportunity.

But then, you’re asked about your salary requirements and your mind goes blank. So, you offer a lower salary believing this will increase your odds at getting hired.

Unfortunately, this is the wrong approach.

Your salary requirements can make or break your odds at getting hired. But only if you’re not prepared.

Ask for a salary too high with no room for negotiation and your potential employer will not be able to afford you. Aim too low and employers will perceive as you offering low value. The trick is to aim as high as possible while keeping both parties feel happy.

Of course, you can’t command a high price without bringing value.

The good news is that learning how to be a high-value employee is possible. You have to work on the right tasks to grow in the right areas. Here are a few tactics to negotiate your salary requirements with confidence.

1. Hack time to accomplish more than most

Do you want to get paid well for your hard work? Of course you do. I hate to break it to you, but so do most people.

With so much competition, this won’t be an easy task to achieve. That’s why you need to become a pro at time management.

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Do you know how much free time you have? Not the free time during your lunch break or after you’ve finished working at your day job. Rather, the free time when you’re looking at your phone or watching your favorite TV show.

Data from 2017 shows that Americans spend roughly 3 hours watching TV. This is time poorly spent if you’re not happy with your current lifestyle. Instead, focus on working on your goals whenever you have free time.

For example, if your commute to/from work is 1 hour, listen to an educational Podcast. If your lunch break is 30 minutes, read for 10 to 15 minutes. And if you have a busy life with only 30–60 minutes to spare after work, use this time to work on your personal goals.

Create a morning routine that will set you up for success every day. Start waking up 1 to 2 hours earlier to have more time to work on your most important tasks. Use tools like ATracker to break down which activities you’re spending the most time in.

It won’t be easy to analyze your entire day, so set boundaries. For example, if you have 4 hours of free time each day, spend at least 2 of these hours working on important tasks.

2. Set your own boundaries

Having a successful career isn’t always about the money. According to Gallup, about 70% of employees aren’t satisfied with their current jobs.[1]

Earning more money isn’t a bad thing, but choosing a higher salary over the traits that are the most important to you is. For example, if you enjoy spending time with your family, reject job offers requiring a lot of travel.

Here are some important traits to consider:

  • Work and life balance – The last thing you’d want is a job that forces you to work 60+ hours each week. Unless this is the type of environment you’d want. Understand how your potential employer emphasizes work/life balance.
  • Self-development opportunities – Having the option to grow within your company is important. Once you learn how to do your tasks well, you’ll start becoming less engaged. Choose a company that encourages employee growth.
  • Company culture – The stereotypical cubicle job where one feels miserable doesn’t have to be your fate. Not all companies are equal in culture. Take, for example, Google, who invests heavily in keeping their employees happy.[2]

These are some of the most important traits to look for in a company, but there are others. Make it your mission to rank which traits are important to you. This way you’ll stop applying to the wrong companies and stay focused on what matters to you more.

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3. Continuously invest in yourself

Investing in yourself is the best investment you can make. Cliche I know, but true nonetheless.

You’ll grow as a person and gain confidence with the value you’ll be able to bring to others. Investing in yourself doesn’t have to be expensive. For example, you can read books to expand your knowledge in different fields.

Don’t get stuck into the habit of reading without a purpose. Instead, choose books that will help you expand in a field you’re looking to grow. At the same time, don’t limit yourself to reading books in one subject–create a healthy balance.

Podcasts are also a great medium to learn new subjects from experts in different fields. The best part is they’re free and you can consume them on your commute to/from work.

Paid education makes sense if you have little to no debt. If you decide to go back to school, be sure to apply for scholarships and grants to have the least amount of debt. Regardless of which route you take to make it a habit to grow every day.

It won’t be easy, but this will work to your advantage. Most people won’t spend most of their free time investing in themselves. This will allow you to grow faster than most, and stand out from your competition.

4. Document the value you bring

Resumes are a common way companies filter employees through the hiring process. Here’s the big secret: It’s not the only way you can showcase your skills.

To request for a higher salary than most, you have to do what most are unwilling to do. Since you’re already investing in yourself, make it a habit to showcase your skills online.

A great way to do this is to create your own website. Pick your first and last name as your domain name. If this domain is already taken, get creative and choose one that makes sense.

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Here are some ideas:

  • joesmith.com
  • joeasmith.com
  • joesmithprojects.com

Nowadays, building a website is easy. Once you have your website setup, begin producing content. For example, if you a developer you can post the applications you’re building.

During your interviews, you’ll have an online reference to showcase your accomplishments. You can use your accomplishments to justify your salary requirements. Since most people don’t do this, you’ll have a higher chance of employers accepting your offer

5. Hide your salary requirements

Avoid giving you salary requirements early in the interview process.

But if you get asked early, deflect this question in a non-defensive manner. Explain to the employer that you’d like to understand your role better first. They’ll most likely agree with you; but if they don’t, give them a range.

The truth is great employers are more concerned about your skills and the value you bring to the company. They understand that a great employee is an investment, able to earn them more than their salary.

Remember that a job interview isn’t only for the employer, it’s also for you. If the employer is more interested in your salary requirements, this may not be a good sign. Use this question to gauge if the company you’re interviewing is worth working for.

6. Do just enough research

Research average salary compensation in your industry, then wing it.

Use tools like Glassdoor to research the average salary compensation for your industry. Then leverage LinkedIn’s company data that’s provided with its Pro membership. You can view a company’s employee growth and the total number of job openings.

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Use this information to make informed decisions when deciding on your salary requirements. But don’t limit yourself to the average salary range. Companies will usually pay you more for the value you have.

Big companies will often pay more than smaller ones.[3] Whatever your desired salary amount is, always ask for a higher amount. Employers will often reject your initial offer. In fact, offer a salary range that’ll give you and your employer enough room to negotiate.

7. Get compensated by your value

Asking for the salary you deserve is an art. On one end, you have to constantly invest in yourself to offer massive value. But this isn’t enough. You also have to become a great negotiator.

Imagine requesting a high salary and because you bring a lot of value, employers are willing to pay you this. Wouldn’t this be amazing?

Most settle for average because they’re not confident with what they have to offer. Most don’t invest in themselves because they’re not dedicated enough. But not you.

You know you deserve to get paid well, and you’re willing to put in the work. Yet, you won’t sacrifice your most important values over a higher salary.

The bottom line

You’ve got what it takes to succeed in your career. Invest in yourself, learn how to negotiate, and do research. The next time you’re asked about your salary requirements, you won’t fumble.

You’ll showcase your skills with confidence and get the salary you deserve. What’s holding you back now?

Featured photo credit: LinkedIn Sales Navigator via unsplash.com

Reference

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